ALPHA PRO TECH LTD Segments Disclosure

14.	Activity of Business Segments

 

The Company operates through two business segments:

 

(1) Building Supply: consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and synthetic roof underlayment and synthetic roof underlayment accessories, as well as other woven material. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.

 

(2) Disposable Protective Apparel: consisting of a complete line of disposable protective garments, including shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods, as well as face masks and face shields for the pharmaceutical, cleanroom, industrial, medical and dental markets. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.

 

The accounting policies of the segments are the same as those described previously under Summary of Significant Accounting Policies (see Note 2). Segment data excludes charges allocated to the principal executive office and other corporate unallocated expenses and income taxes. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

 

The following table presents net sales for each segment:

 

		Years Ended December 31,
		2024				2023
Building Supply		$	35,965,000			$	40,396,000
Disposable Protective Apparel			21,875,000				20,836,000
Consolidated net sales		$	57,840,000			$	61,232,000

 

The following table presents the reconciliation of total segment income to total consolidated net income:

 

		Years Ended December 31,
		2024				2023
Building Supply		$	5,746,000			$	5,703,000
Disposable Protective Apparel			4,481,000				4,385,000
Total segment income			10,227,000				10,088,000
Unallocated corporate overhead expenses			5,207,000				4,663,000
Provision for income taxes			1,091,000				1,236,000
Consolidated net income		$	3,929,000			$	4,189,000

 

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The following table presents net sales and long-lived assets, net of accumulated depreciation and amortization, information by geographic area:

 

 

		Years Ended December 31,
		2024				2023
Net sales by geographic region
United States		$	57,211,000			$	60,882,000
International			629,000				350,000
Consolidated net sales		$	57,840,000			$	61,232,000

 

		As of December 31,
		2024				2023
Long-lived assets, net by geographic region
United States		$	7,325,000			$	4,340,000
International			1,195,000				1,247,000
Consolidated total long-lived assets, net		$	8,520,000			$	5,587,000

 

Net sales by geographic region are based on the countries in which our customers are located. For the year ended December 31, 2024, the Company did not generate sales from any single country, except the United States, that were significant to the Company’s consolidated net sales.

 

The following table presents the consolidated net property, equipment, goodwill and intangible assets by segment:

 

		As of December 31,
		2024				2023
Building Supply		$	6,069,000			$	3,389,000
Disposable Protective Apparel			1,424,000				1,213,000
Total segment assets			7,493,000				4,602,000
Unallocated corporate assets			1,082,000				1,040,000
Total consolidated assets		$	8,575,000			$	5,642,000